SBS Transit posts 30% drop in Q2 earnings, weighed down by rising staff cost
Higher staff cost continued to weigh heavily on transport operator SBS Transit's profitability.
The ComfortDelGro-owned group posted a 30.6 per cent drop in net earnings to $3.16 million for the quarter ended June 30, despite revenue rising by 6.7 per cent to $209.34 million on the back of an ever-growing ridership.
As it ramps up headcount to prepare for the opening of Downtown Line 1 in December, SBS's staff cost rose 12.3 per cent to $93.9 million.
Higher expenses for repairs and maintenance and increased depreciation charges also eroded earnings.